Consult magazine - Fall 2013 issue

cThe magazine for members

of CMC-CanadaconsultFall 2013

The legacy of passion

Ted Netten FCMC & George Currie FCMC

CMC-Canada celebrates fifty years

Securing Canada Mike Appleton FCMC Managing Director, DAMA Consulting Services Walking along the Rideau Canal National Defence Headquarters and Parliament Hill in Ottawa.

Despite headline grabbing cases and high profile events, the task of‘Securing Canada’ is a work in progress that requires a 24/7 effort.

28Focus

Departments: 02 editor’s note; 03 at cmc-canada; 04 it’s a wonderful life; 06 industry insights; 14 coast to coast; 22 passion in the profession; 31 top of mind; 32 how’s your asset?

InsideThe role of consultants in integrating CSR08

Public-private partnerships16Doing business internationally20

It is always financially prudent to stay on top of new trends in corporate ideology. This edition of Consult centres on newerconcepts such as sustainability and theeconomics of policing that are changing the way we think about economics andimpacting our future.

Business leaders, as well as trade consultants, often focus their energy on the design, development, and managementof long-term projects that their companiesundertake in order to remain competitive.Shareholders of these companies exertpressure on management to ensure theseprojects raise profitability, especially in theshort term. However, our lead piece byMarilyn Friedmann suggests that these verypressures are the reason companies lagbehind in sustainability concerns, which inthe long-term negatively affects profitabilityfor everyone.

Sustainability is just one example of a trendthat will change how businesses operate.Even though losses might be suffered in the short-term, over time these trends are an

investment, much like CSR, that will providelasting returns. The idea that companiesneed to start looking past immediate profitsin exchange for long-term sustainability is not completely new, but environmental pressures on business from government andpublic organizations are very likely to risethroughout the next few years.

Consultants and investors who understandthe coming business climate that viewssustainability issues as a lengthy investment(of the cost of doing business) are likely to have an edge on their competitors.

The other articles in this edition tackle more traditional issues of cost effectiveness,entrepreneurship, and innovation, and how you can apply those concepts to yourown opportunities. However, these issuesare viewed through the lens of changingeconomic times, too. Trends in economicpolicy and increased public awareness callfor greater transparency, more focus oncost-effectiveness, and an increased effortfor adaptability to change.

This edition provides first person accountsof how business executives and entrepreneursare adapting to changing economic winds,everywhere from development in the thirdworld to domestic projects in the financingof physical infrastructure.

We hope these ideas will help you gaininsight into the changing business climateas you invest, advise, and develop new ideasfor your clients. Enjoy!

HAROLD SCHROEDER FCMC PRESIDENT,SCHROEDER & SCHROEDER INC.

EDITOR’SNOTE

consult magazine Fall 2013 3

AT CMC-CANADA

As you know, CMC-Canada was formed 50 years ago, and as we’ve met with many of thefounding volunteer membersduring the past year, we’ve beenreminded of how much, not onlythis association but also (moreimportantly) the profession ofmanagement consulting world-wide, owes to these leaders.

We believe that you – as a proudCMC – can play an important rolein the next 50 years. As societyand technology have changedsince 1963, we look at ways tokeep you up-to-date with currenttrends and methodologies, andto advance the CMC designation.We listened to what you had tosay in our Member Survey and...

New Strategic Plan: 2013-16Engage with current and prospectivemembers, with consumers of consultingservices, and with the wider business andprofessional community to demonstratethrough PD programming, thought leadershipand related communications, and otheractivities and events that individuals holdingthe CMC designation possess superior leadership, analytical, problem-solving, andsolution development skills that they applywith independent judgement in a variety oforganisational roles and environments toinfluence decision outcomes.

Promote the CMC brand and designation to prospective members, to consumers ofconsulting services, and to the wider business,professional, and academic communities asrepresenting superior business, professional,and leadership capabilities that will be valuedin almost all organizational settings.

Strengthen and Sustain the CMC-Canadaorganization as an effective developer andprovider of high quality, high performancemanagement consulting-focused professionaldevelopment programming, activities, net-working, and community-building activitiesthat will in turn sustain the profession and be attractive to leaders and managementprofessionals in a wide variety of organiza-tions and roles.

Attract to our membership by 2016,(through our activities), more than 2,000 newmembers, of whom at least half will haveembarked on pursuit of the CMC designationby June 30, 2016.

Building Awareness (of the CMC Designation) CampaignTo create further demand for hiring CMCs,January will see the launch of our campaignto build awareness of the designation amongthose we know are responsible for procure-ment of consulting services – starting with theChartered Accountants. Our research andmarketing teams have been hard at work onthis campaign. A copy of the ad has beenincluded with this issue – help promote thedesignation by sharing it with colleaguesand friends.

Knowledge Our 2013 Management Consulting IndustryReport (released November 28) providesinsight into those companies and sectorslooking to expand, and to hire, and the challenges that face the profession.

Our new wiki will be launched in early 2014 – to equip management consultants with thetools you need, plus the combined experienceand knowledge of all members – essentialfor the future of the profession.

Continuing Professional DevelopmentThe Continuing Professional Development(CPD) Committee is in the process of analyzingrecent member survey results, as part of theirneeds analysis. More than 350 CMC-Canadamembers responded to the survey – watchyour email for information from our CPDCommittee, as they focus on providing youwith the professional development informationyou’ve said you need and want – in a formatthat works for you.

We extend our sincere thanks for your continuedsupport, as we continue to provide the productsand services to best serve our members.Please contact us ([email protected]) with any questions or comments.

VISITcmc-canada.ca

REGULARLYTO SEE

WHAT’S NEW

Publisher: Glenn Yonemitsu CMC Editorial Board: Harold Schroeder FCMC, Mike AppletonFCMC, Eric Inthof FCMC, Ron Knowles FCMC, Peter MilleyFCMC, Greg Richards FCMC, Tony Wanless CMCEditor in Chief: Harold Schroeder FCMCManaging Editor: Andrea VandenbergContributing Writers: Mary Blair, Marilyn Friedmann CMC, John Gelder FCMC, Ashley Lambe, Rob Lowry, Richard Lundeen CMC, Carol Panasiuk CMC, Robert White CMC, Glenn Yonemtisu CMC

Creative and Art Direction, Design: Aegis Design Inc.Cover Photo: Nation Wong Photography

Consult Magazine is published semi-annually by the CanadianAssociation of Management Consultants (CMC-Canada).

Consult welcomes unsolicited manuscripts for publication,comments, letters to the editor, or ideas on themes.

Please send all feedback and address changes to CanadianAssociation of Management Consultants (CMC-Canada),PO Box 20, 2004-401 Bay Street, Toronto, Ontario, Canada,M5H 2Y4 or via email to [email protected]

Consult is published simultaneously on the Internet at consult-magazine.ca

Copyright 2013 – Canadian Association of ManagementConsultants. Reproduction in whole or in part withoutpermission is prohibited.

Advertising Sales and Inquiries: Sylvia Biggs (416) 860-1515 [email protected]

consult

Kathy-Jane (KJ) Elton CMC, excels as a designer, artist, and management consultant.

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And yet others have a clear idea of wherethey’re going, and possess the ability tochange course and ‘do a 180’ if they need to.This is Kathy-Jane (KJ) Elton.

KJ was born in Newfoundland, where as ateenager she developed a serious interest inEastern religions. After earning a gold medalfor academic excellence, she moved acrossthe country to complete a Masters Degree inAsian Studies at the University of BritishColumbia. She lived in Vancouver for threeyears, enjoying its ethnic diversity and paved,flat roads for cycling; so different from thesteep hills and wind of St. John’s.

KJ studied Japanese and considered ateaching position in Japan, but then askedherself where this field of study was leading.A Masters Degree in Eastern Philosophy wouldnot have opened many doors. Re-examiningher life led KJ to change focus completely,move back to The Rock, and enroll in an MBAprogram. She’d always been good at math inschool, but it was still a welcome surprise tolearn she had a distinct talent for problemsolving and quantitative analysis.

Upon earning her MBA, KJ took a job in theNewfoundland government in the field ofindustrial benefits associated with theemerging oil and gas industry. She quicklyadvanced to a more senior position as PolicyAnalyst for the government’s ExecutiveCouncil, preparing policy and program re-commendations for the provincial Cabinet.

Working in resource policy and covering oiland gas, tourism, transportation, Agri-foods,forestry, mining, and other resource sectorsprovided a broad and in-depth knowledge ofdevelopment priorities for the province – as

well as the sensitivities and challenges. As KJexplains, “it was fast-paced, challenging,highly professional, complex… and I loved it!”She admits that this experience and herunderstanding of government’s priorities andprocess continue to impact her work andperspective today.

After her time with the provincial government,KJ wanted to see the other side of the businessworld, and took a job with the St. John’s Boardof Trade responsible for Government Affairsand Policy. This position exposed her to thepriorities of the business community and howthey were impacted by government policies.

She then started a family and began acceptingindividual contracts with the provincialgovernment – including a position as ExecutiveDirector of the Institute of Small BusinessCounselors. This allowed her the best of bothworlds: a varied and satisfying career, and the flexibility to spend time with her childrenwhile she managed life as a single mom. Atypical day entailed seeing the children off toschool, working until they came home,spending time as a family, and then workingagain once they’d gone to bed. Since this wasthe 1990s, technological advances (Internetand email) now made this a viable option, andKJ took computer courses to ensure her technical skills were up to speed.

KJ decided to work towards her CMC designation; an uncommon designation in herprovince but one that she highly regarded. She wanted to instill in her children the impor-tance of setting new goals for personal andprofessional development. When the letterarrived with the results of her CMC writtenexam, KJ waited until her children were homeso they could open it together.

KJ feels strongly that as a consultant she mustalways leave her clients in a better place thanwhen she started, empowering them with new skills and perspective to support themmoving forward. She seldom has only oneengagement at a time but prefers to manage3-4 projects simultaneously and loves thevariety of the projects themselves – aboriginal,health, forestry, small business, oil & gas, etc.Her unique knowledge of the province’sresource sector and innate problem-solvingskills mean she seldom has free time.

She also owns her own textile company – Eyeof the Needle – and her free motion embroideryof Newfoundland landscapes hang in livingrooms, corporate offices, and boardroomsthroughout the Province. She sells all that sheturns out. Her clothes – she makes all her own,including coats and suits – have won awards,and some have toured art galleries throughoutthe Maritimes and New England.

Even though KJ’s consulting practice is verysuccessful, her commitment to CMC-Canadakeeps her volunteering in various capacities.

KJ’s daughter Samantha is now 22 and isworking in Fort McMurray as she completes herdegree in Public Relations. Son Lukas, 21, isworking towards a degree in marine history.With an empty nest, KJ looks forward to newchallenges and opportunities and recently tooka seven-day white-water rafting trip throughthe Grand Canyon, sleeping under the starsand exploring the mystic of lost worlds.

Her vow in life ‘if you’re going to do it, do itright,’ speaks not only to her commitment toher clients, but her family, her volunteer roles,and all elements of her extraordinary life. C

IT’S A WONDERFUL LIFE

If you’re going todo it, do it rightBY MARY BLAIR CAE, MANAGING DIRECTOR, CMC-CANADA

Some people approach life with clear goals and structure theireducation, business, and family lives in order to achieve those goals.Others wander through life with no clear purpose...

6 consult magazine Fall 2013

INDUSTRYINSIGHTSNews and information about the managementconsulting industry and profession.

Three of the Big 4 Firms released theirannual financial statements for 2013 (KPMG’syear end is September 30th, so we haveused their 2012 figures) and Advisory/Consulting divisions lead each of the firms in their revenue growth.

In total, the Big 4 generated global revenuesof more than $113 billion, of which advisory/consulting services made up $33 billion or29%. Most interesting is the fact that theadvisory practices are leading the way whenit comes to growth. In each of the firms, the advisory revenues grew faster than anyother practice area.

Deloitte Consulting led the way with globalconsulting revenues of more than $10 billion,while PWC was close behind with $9.2 billion.KPMG has $7.9 billion and Ernst & Younghad $5.8 billion.

An interesting metric to compare acrossfirms is the revenue generated per employee.PWC leads the way with $174K, Deloitte with$161K, KPMG with $151K and E&Y with $147K.

Ten years after three of the four firms soldtheir consulting practices due to Sarbanes-Oxley Act, it is growth figures like these thatreinforce the importance of the Advisorypractices to these professional services firms.

Advisory leads growth at the big 4 accounting dirms

Sixteen academics have been nominated as an Academic Fellow of the InternationalCouncil of Management Consulting Institutes (ICMCI). The award is intended toconfer a mark of distinction that recognizes those academics who have contributedto the study and teaching of management consultancy. The FICMCIs are:

International recognition foracademics cooperating withtheir national IMCs

Flemming Pulfelt Professor of Management & Strategy; Vice Dean atCopenhagen Business School

Virachai Vannukul CMCLecturer/Presidential & Key Executive MBA Program at Pepperdine University,California, USA

Gottfried HaberProfessor & Director, Centre for Health CareManagement/Health Sciences at Danube University Krems

Alfred Janes CMCBusiness Professor at ViennaUniversity of Economics

Peter HeintelMember of the DoctoralAdvisory Intervention Researchat Intervention Research Institute Klagenfurt & Vienna.

Kathy O’ReillyProgram Director of the M.Sc. in Management ConsultancyProgramme at UCD SmurfitBusiness School

Tim ClarkProfessor of OrganizationalBehaviour; Dean of Postgraduate& Undergraduate Education at Durham Business School

Andrew SturdyHead of Department of Manage-ment; Chair in Management at the University of Bristol

Daniel MuzioProfessor of Organization;Leadership at ManchesterBusiness School

Léon de CaluwéProfessor & CMC at VUUniversity Amsterdam; a seniorpartner at Twynstra Gudde

Yvonne BurgerPart time Professor at VUUniversity Amsterdam

Fawwaz Elkarmi CMCan Associate Professor at the Faculty of Engineering at Amman University

Greg Richards FCMCProfessor at the University of Ottawa

Mike Thompson FCMCAssociate Professor at RoyalRoads University, Victoria

Ron Babin CMCAssistant Professor at Ryerson University, Toronto

Andreas Werr Professor at Stockholm School of Economics

The recognized Academic Fellows will use the ICMCI as a platform and community for sharing knowledge and ideas for the benefit of both the clients of the practicingconsultants and the Academic Fellow’s students.

For more information contact: Reema NasserExecutive Director, ICMCI email: [email protected]


Monitor is pickedup by Deloitte!

Back in the 1980s, Harvard Business Schoolstrategy professor Michael Porter and hisbooks, ‘Competitive Strategy,’ ‘CompetitiveAdvantage,’ and ‘The Competitive Advantageof Nations’ were required reading for everyMBA and management consultant. From thispopularity spawned Monitor Company, amultinational management consulting firm withoffices in 26 major cities around the globe.

In Canada, integrative thinking guru Roger Martin, in his pre-Rotman School ofManagement (University of Toronto) days,founded the Canadian office and led itseducational arm, Monitor University. Thanksto Porter’s guru status, Monitor was successfulin breaking into the strategy firm segment,occupied by legendary and well-established

players such as McKinsey, Boston ConsultingGroup, Bain & Company, AT Kearney, ArthurD. Little, and Booz & Company.

The Canadian Federal Government waseven a client – in the early 1990s, BrianMulroney hired Michael Porter and Monitorto conduct a study on Canadian competi-tiveness. ‘Canada at the Crossroads’ wasthe report on how to ensure Canada remainseconomically strong, even when resourceswere becoming a less important influence.Surprisingly, many of the issues identified inthis report, like taxation and freer trade, havebeen addressed in the last 20 years.

But even with this kind of reputation, Monitorfailed to keep up with its own strategy. Aninteresting article in Forbes magazine arguesthat Porter’s Five Forces framework was finewhen analyzing a stable industry, but lackedthe ability to help when disruptive influencesand new players revealed themselves. It is

ironic but the strategy consulting firm wasnot able to manage its own strategy.

The problems started during the 2008recession, when a refinancing was requiredto keep the firm liquid. But, a continuedmalaise led to the firm’s inability to meetsome key repayment milestones in Novemberof 2012 with its financier. In DecemberMonitor filed for bankruptcy protection.

A strategic partner was found to buy someof the key assets… and Deloitte has acquiredthe Monitor name and plans to market itselfwith the moniker Deloitte Monitor.

So, ten years after its Big 4 compatriots sold their management consulting practices(in response to the Sarbanes–Oxley Act)where Deloitte remained in the game, the consulting powerhouse continues todifferentiate itself, by moving closer to thestrategy firm segment by buying andrebranding using the Monitor trade name.

After two years of study, market research,and two task forces, CMC-Canada is set tolaunch its ‘We Handle Tough Stuff’ buildingawareness campaign in January 2014.

Targeted at Chartered Accountants (and yes, we know they now go by the CPA title),‘We Handle Tough Stuff’ is designed to re-establish the awareness of the CMCdesignation to the professionals who werekey players in getting CMC-Canada established back in 1963.

The Building Awareness initiative waslaunched two years ago, as the CMC-Canada National Board agreed that anawareness-building program, focusing onprivate sector purchasers of consultingservices, be targeted. CMC-Canada knewthat in order to be effective with limitedresources, we had to focus on a specific,narrow audience, with the discipline to not waver from that focus.

The Building Awareness Planning Task Force (BATF) was chaired by Mark BrownFCMC, MNP. The BATF researched thevarious audiences and recommended thatthe initial target be Chartered Accountants,as they have significant reach into theprivate sector and are either involved in the decision or influence the purchase ofmanagement consulting services.

The BATF passed the torch to the BuildingAwareness Implementation Task Force(BAITF), chaired by Glenn Yonemitsu CMC,and included representatives from mostInstitutes. Over the past year, this groupconducted and led market research to better understand the Chartered Accountantaudience, and set metrics to gauge progress.Praxis Analytics from Regina, SK, led byCam Cooper CMC, conducted an in-depthstudy on CAs.

IdeaStudio, a boutique Toronto-based

marketing agency, was selected to serve asthe agency of record for this initiative. Theydeveloped an engaging, powerful campaignthat will start with paid advertisements in CA magazine in January.

As the building awareness initiative wasconceived to be a broad-based, multi-prongedfocus on CAs, all CMC Institutes, Chapters,and individual members are encouraged todo their part to ensure that CAs see the CMCdesignation – through attending CA events,speaking at CA professional developmentprograms, conferences, and publishingarticles in CA publications.

The first ad of the campaign, ‘dragon slayer,’is included with this edition of Consult. We hope you will frame the ad and hang it in your office – show your pride and helpbuild awareness!

CMC-Canada launches buildingawareness campaign

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The role ofconsultants in integratingcorporate socialresponsibility

BY MARILYN FRIEDMANN CMCPRINCIPAL, FRIEDMANN STRATEGIC CONSULTING

There seem to be more conferences,training, and luncheons on sustainabilitythan almost any other management topictoday. But how important is CSR to thepractice of management consulting?

opposite: CONSULTING UNDER THE SPOTLIGHT: Marilyn Friedmann CMC, believes there is a growing need for consultants to take a more integrated approach to sustainability consulting.

It’s important for management consultants to understand what areas of sustainability aremost material to the client’s business, not just whatwe happen to be experts at.”—Marilyn Friedmann CMC“


Here to staySome corporate executives I spoke with recentlyexpressed a view that sustainability peaked in popularityin 2009/2010 and there is no longer the same ‘buzz.’ Othersbelieve that it appears stuck in neutral at the middlemanagement level, and that nearer-term profitability pressures are diverting attention away from sustainability.

Yet others are driving the agenda forward, viewing sustainability as crucial to successful business. The mostprogressive companies are shifting away from standalonephilanthropy, community investment, and volunteer projects, and are integrating sustainability into their corebusiness strategies. There is a growing conviction within thesustainability field that economic and reputational benefitsare available to companies that effectively implementsustainability strategies across their businesses.

Nelson Switzer, Director and LeaderSustainable Business Solutions at PwC Canada identified three megatrends in CSR

More companies are adopting sustainabilityreporting practices

Companies are experiencing rapidly shifting requirements in how they operate as a result ofemerging factors and regulations such as: • Dodd-Frank (U.S. Financial Regulatory Reform)• Conflict Minerals rules• Climate Change / Severe Weather Adaptation

An increasing number of companies are incorporatingenvironmental, social, and governance data intoasset management decision-making

Current marketKatie Dunphy, Senior ManagerClimate Change & Sustainability for KPMG, describes the Canadian sustainability consulting market ashaving slow but consistent growth in the past 5-7 years

“Businesses are facing increasingdemand, for the Canadian sustainabilityconsulting market has been one of slowbut consistent growth in the last 5-7 years.Businesses are facing increasing demandsfor transparency and improved performancefrom a wide variety of stakeholders… the recent release of the Global ReportingInitiative’s G4 Reporting Guidelines(www.globalreporting.org/reporting) willprompt companies to look for support

and guidance from consultants during the two year transition period.”

The role consultants can playThere is a growing need for consultants to take a moreintegrated approach to sustainability consulting. KatieDunphy suggests: “rather than focusing solely on theissue of climate change, it would be more relevant toexamine the business impacts of climate change in thecontext of rising energy prices, water scarcity, and foodsecurity, and the relevant implications under thecompany’s existing business model.”

This requires that consultants work to build under-standing, capacity, and alignment across all departmentsand levels. Nelson Switzer estimates the ratio for successat “70% business knowledge and 30% CSR.”

Take action: engagement plan is essentialCompanies and government agencies often struggle toimplement consultants’ recommendations as they relateto sustainability. The CMC-Canada Essentials of Manage-ment Consulting course provides helpful guidelines for the Implementation Phase, recognizing the challengesthat companies face at this stage. Dropping final recommendations on a client then exiting seldom worksin the field of sustainability.

Sustainability consulting must also include ethical considerations, as consultants act in full awareness of the environmental, social, governance, and economicimpacts of their advice.

In my book Capitalism and Freedom, I have called [CSR] a ‘fundamentally subversive doctrine’ in a free society, and have said that in such a society, ‘there is one and only one social responsibility of business’ – to use its resources and engage in activities designed to increaseits profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”—The Social Responsibility of Business is to Increase its Profits by Milton Friedman, The New York Times Magazine, September 13, 1970

“

The management consulting practice could play a leadership role in closing the implementation gap, bydeveloping new models consulting/practitioner/research models—thatensure the actual realization andcontinuous improvement of sustainabledevelopment strategies and plans.”—Ann Dale CMC (pictured on right), Canada Research Chair, Sustainable Community Development; Professor, Royal Roads University, School of Environment and Sustainability

“


Moving beyond the wild west phaseThere is a growing need for skilled consultants to assistorganizations in becoming more open, connected, andable to respond more consistently to sustainability issuesand opportunities across the enterprise.

Efforts are underway by the International Society ofSustainability Professionals to formalize a Common Bodyof Knowledge for Sustainability Practitioners. Standards andprofessional certification in sustainability may be needed.

Key considerations Recognise that the knowledge base is expanding quickly

Know how sustainability fits into the bigger strategic picture for your clients

Stay current with standards and frameworks, including:● ISO 26000: www.iso.org/iso

● A1000 AccountAbility Principles Standard 2008:www.accountability.org

● UN Global Compact Ten Principles: www.unglobalcompact.org

● Stakeholder Engagement: www.accountability.org

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Demonstrate value to the businessBob Willard, expert on the business value of corporate sustainability strategies

“There is a two-part business case for sustainability: capture opportunitiesand avoid risks. If a typical company were to use best-practice sustainability approaches already being used by real companies, it could improve its profit by51% to 81% within three to five years.That’s the upside. The downside is that it exposes itself to a potential 16% to 36% erosion of profits if it does nothing. The bigger risk is that capital markets mayconsider the company a risky investment.That’s why consultants need to helpcompanies with environmental, social and corporate governance (ESG) riskmanagement.”

What can management consultants do to advance the CSR agenda?Let your voice be heard. What do you think CMCs canand should do, if anything, to advance the CSR agenda?Participate in CMC-Canada’s Energy & Climate ChangeSpecial Interest Group (SIG), which meets on the 4th

Tuesday of each month with the goals of knowledgesharing, planning, and identifying trends. Contact NeilFairhead, [email protected], for details.

Consider joining The International Society of SustainabilityProfessionals (ISSP), a valuable community for resourcesharing, professional development, and conferences. The ISSP is currently developing a certification programfor sustainability professionals.

Research all relevant training opportunities that will behelpful to your practice. A few recommended programsare identified here; many universities also offer CSR/Sustainability programs.

The international society of sustainability professionals: www.sustainabilityprofessionals.org

The accountability project:www.theaccountabilityproject.ca

The natural step: www.naturalstepcanada.com

The certificate in corporate social responsibility (CSR):www.csr-stmikes.ca C

i www.sustainabilityprofessionals.org/process-developing-certification-sustainability-professionals

ii theregenerationroadmap.com/reports.html#/changing-tack.html

Requirement: Extended Vision of Leadership A joint project by Globescan and SustainAbility entitled ‘The Regeneration Roadmap’ wrapped up in June of this year. This international project identifies six essential attributes of extended leadership that are required for success in sustainabledevelopment leadership. Trust, collaboration, and leadership are the enabling elements required:

The idea that companies have a duty to address social ills is not just flawed… it also makes it more likely that we’ll ignore the real solutions to these problems.”—Aneel Karnani, “The Case Against Corporate Social Responsibility” The Wall Street Journal, June 14, 2012“

Trust, Collaboration and Leadership Trust, Collaboration and Leadership


COAST TO COASTEvents, news, and happeningsat CMC-Canada

BRITISH COLUMBIAAt its AGM in May CMC-BC welcomed threenew Council members, Paul Burgener CMC,Gordon Gunn CMC, and Don Sherrah CMC,as Chapter Chairs and thanked Joy PlayfordCMC, Dale Christenson CMC, and SatnamSekhon CMC for their wo rk over theprevious two years in those roles. The AGMalso saw outgoing President Russ GrabbCMC present the inaugural President’s Awardfor Community Service to three highly deservingmembers, Ray Lazanik CMC, Jim Pigott CMC,and Marty Playford CMC. The Institute alsopresented its refreshed Mission, Values andStrategy statement for 2013/14 which setsout 5 key initiatives to deliver increasedvalue to members:

Achieve self-regulated professionalstatus in BC.

Achieve preferred status with government and business.

Completely optimize value to membersand brand awareness with stakeholders.

Grow its membership to 1500+ members:• 1000+ certified.• 50% under 40 years of age.• 30% student or prospective members.

Improve communications with andamong its members

CMC-BC-MAINLAND CHAPTERLean Across the BC Public Service

Lynda TarrasHead of the BC Public Service Agency

“Doing ‘less’ allows you to do ‘more’ for your clients.”

SOUTHERN INTERIOR CHAPTERProfessional Insurance: An Essential to Practice Risk Management

Andrew SpencerAccount Executive LMS PROLINK

Andrew’s presentation explored the currentenvironment for professional risk management.Questions posed to attendees included: Are your consulting clients increasingly

requiring professional insurance as part of their contracts?

Did you know that lawsuits, allegingprofessional negligence, are becomingmore common?

Have you considered that a significantpercentage of lawsuits alleging professionalnegligence are frivolous in nature andlegal defence costs are very expensive?

CMC-Canada’s exclusive Group ProfessionalLiability program with LMS Prolink is a low-costsolution for Errors and Omissions InsuranceCoverage, providing the safety net you need.While coverage varies, assuming a basicpolicy costs $2000, joining CMC-Canada cansave you the cost of your annual membershipfees in insurance coverage.

BCALBERTA6th Annual Consulting Conference: Management Priorities in Government

Michael ‘Pinball’ ClemonsVice-Chair Toronto Argonauts

As a former all-star running back, Grey Cup winning coach, President and CEO, and now Vice-Chair for the TorontoArgonauts, Michael ‘Pinball’ Clemons is aman of unquestionable character and spirit.Pinball inspired Conference attendees bydemonstrating what it means to beat theodds and encouraging listeners to useteamwork to achieve their goals.

AB

MANITOBAPeople’s Choice Award at WinnOvation 2013In January, the Institute sponsored the Award,whose winner was Epicenter AV (www.epicen-terav.com), which develops innovative technology to simply the management ofcomplex audiovisual systems.

Congratulations

Sandra Altner FCMC

CEO of the Women’s Enterprise Centre of Manitoba

Sandra was named President of the Canadian Council for Small Business andEntrepreneurship in May.

At its AGM in June, the Institute awarded the CMC designation to Murray Grant CMC,principal of MasterKey Business Solutions.Members also approved amendments to the By-laws and welcomed the 2013-2014Institute Council: Richard Brodeur CMC andAl Moxam CMC join returning CouncillorsTim Wildman CMC(President), Inga SheaneCMC (Vice President),Randy Baldwin FCMC(Past President), Alex Yaworski CMC(Secretary), DavidThompson CMC (Treasurer), WarrenThompson CMC (Registrar), SandraFoster CMC, and Tim Kist CMC. MB

SASKATCHEWANThe Saskatchewan Institute is undertaking a major initiative in 2013/2014 – ‘TheSaskatchewan Economic Review.’ This Reviewwill identify and profile the contribution ofurban centres in both supporting andsustaining Saskatchewan’s economic growth.The Institute will provide recommendationsfor policy and business leasersto sustain the current growth of Saskatchewan’s economy. In completing this Review, the Institute will help elevatethe business and publicawareness of the CMCdesignation, highlight the role of a CMC, andshowcase the abilities of Saskatchewan CMC members. SK

ATLANTIC CANADABasic Principles of Lean Manufacturing and the Relation to Organizational Structure

Bert DriessenOwner/Founder 2XL Consultancy

“Lean Manufacturing depends on a sector independent set of tools to enhance operational efficiency (not strictlylimited to manufacturing only)… it isrecommended to first focus on restruc-turing and streamlining the organizationprior to the introduction of the completetool kit for Lean Manufacturing.”

AC

ONEASTERN ONTARIO CHAPTERFederal Government ProcurementChanges and Initiatives

Shereen Benzvy MillerDirector General of theOffice of Small and Medium Enterprises, PWGSC

As a follow-up to her very popular and wellreceived presentation to EOC members in 2011,Ms. Miller spoke about a number of changesand initiatives underway at PWGSC, including: Smart Procurement, a new initiative within

PWGSC, which changes the way governmentundertakes the procurement process.

The new ProServices system and what toexpect in the coming months.

The Supplier Advisory Committee, a newsupplier consultative body at PWGSC.

The Canadian Innovation Commercialization Program.

An announcement and demonstrationregarding the next generation of thegovernment’s electronic tendering system.

ONTARIOGREATER TORONTO AREA CHAPTERLeadership Thought Forum Series:Strategic Discomfort

David TaitDirector AlixPartners

“It is about managing the culture,keeping the firm nimble, on edge,uncomfortable and hungry... andbeing focused.”

SOUTHWESTERN ONTARIO CHAPTERCommunication and Leadership Training

Tim O’ReganVice PresidentBusiness Development Eagles Flight

In conjunction with its new CMCreception, the SWO Chapterwelcomed Tim O’Regan from EaglesFlight. Eagle’s Flight harnesses thepotential in organizations and sparkstransformation through unique teamand leadership training experiences.

QUEBECCongrès de l’Ordre – Gérer lesrisques pour mieux performerLe Congrès de l’ADMA a eu lieu àQuébec en Janvier. Les participantsont pu choisir parmi plus de 17 activités de formation – couvrant une variété de besoins en matière de perfectionnement professionnel.Parmi ces activités, un panel

d’experts et de praticiensexploré divers aspects dela bonne gouvernance en matière de gestiondes risques.

QC

Management gurus have told governments to focus oncore functions by concentrating on steering without beingdistracted by rowing. The most recent step in this evolutionarytrail of transferring ‘rowing’ functions outside governmentis the Public-Private Partnership – known by the acronymP3, [except in Ontario where the local variant is calledAlternative Financing and Procurement (AFP)].

P3 arrangements often involve the design, development,management, and long-term financing of physical infra-structure to facilitate the delivery of services to the public.The same P3 model has been applied to services includingfacility management and IT systems.

In several jurisdictions, a separate project deliverydepartment or agency has been created as the focus for P3 expertise and activity – Infrastructure Ontario,Partnerships BC, and PPP Canada.

The Path to Successful P3sThe P3 approach has helped improve the initial definitionof the desired long-term results, enforced diligent projectmanagement to ensure on-time and on-budget projectdelivery, and attracted sophisticated sources of privatesector expertise and financing. But it is not withoutchallenges and risks.

Some may say that the public service mantra is: “Justfollow the process. We’re not certain what the result willbe, but it will be acceptable if you just follow the process.”Conversely the private sector says, “What result do youwant? We’ll figure out how to do it later.”

The critical factor in successful P3s is acknowledging both that the desired result must be defined accuratelyand that the process must meet the tests of public scrutiny– open, fair, and transparent.

Public-private partnerships can’tsucceed withoutactive owner participation

BY ROB LOWRY, VICE PRESIDENT AND

RICHARD LUNDEEN CMCPRESIDENT, SEG MANAGEMENT CONSULTANTS INC.

Northwest Anthony Henday Drive, Alberta (Merit Award 2012) This project involved the design andconstruction of approximately 21 kilometres of six and four-lane divided roadway. It has eight interchanges,five flyovers and two railroad crossings. The road, which opened to traffic in November 2011, has deliveredboth cost savings projected over the life of the 30-year agreement of $240 million and reduced averagecommute times north of Edmonton. Photo by Ryan Jackson, Edmonton Journal


Public-private partnerships can’tsucceed withoutactive owner participation


To ensure value for money from this new bridge betweenthe sectors, considerable effort must be invested indeveloping and documenting the desired results. At best,the results will be defined in performance terms, butinvariably the requirements are described in prescriptivedetail.

The P3 model is based on the proportionate assignmentof risk based on the means, and ultimately theresponsibility, to assume and manage that risk. As thepurchaser, government decides which risks it will transferto the private partner, and by default which remaining risksit will retain. Beware: none of the risks magically disappear.

Typically, risks relating to cost and schedule control receivemost attention. The priorities of P3 project delivery organiz-ations are focused mainly on the procurement stage andhanding over the completed project (building, road,bridge, or IT system) to their client, the public sector owner.

Since P3 contracts often have very long terms (30 yearsis typical) another risk also deserves priority attention. This relates to the question: has the public sector client – the ‘owner’ – allocated the right resources both to theprocurement stage and to carry out its long-term servicemanagement responsibilities?

Owner Participation is CriticalIn P3 project delivery, organizations generally take the lead role during the planning and procurement phase anddrive the process competently to meet schedule and cost parameters. Their clients – the public owners suchas hospitals, government program departments, andinstitutions (that may undertake only a single P3 projectin a career lifetime) – are essential participants.

Since P3 contracts often run for decades, this is farbeyond our ability to plan with certainty. In large P3projects with multi-year schedules, the leverage formaking cost-effective decisions declines throughout this initial planning phase and diminishes rapidly once thecontract is finalized. Conversely, the expenditure curverises slowly in the initial stages and continues upwardonce the contract is in place.

Committing adequate client resources to improve thequality of early planning and procurement decisions isessential to a successful project completion and toeffective ongoing operation. A wide range of represent-atives from across the owner organizations should beinvolved to ensure accuracy and to foster buy-in by thosewho will occupy the completed facility or use thecontracted services.

Once the P3 contract is in place, cost-effectiveness isdetermined by three main factors: The terms of the contract. The extent of changes to meet unforeseen

(or absent) requirements. The diligence of the owner to ensure that the P3

supplier provides the quality and value of goods and services described in the contract.

Unlike traditional contracts for the delivery of goods(within days or months), or services (over months or a fewyears), P3 contracts anticipate an ongoing businessrelationship that requires robust participation from boththe purchaser and the supplier. Clients cannot just signthe PO and wait for delivery! Effective management of a

Kelowna and Vernon Hospitals, BC (Service Delivery Award 2012)This complex project includes a whole-site facility management model with multiple buildings 50 kilometres apart that fall under two regional healthorganizations. The private partner took over responsibility for maintainingexisting facilities in 2009, as well as three new facilities. The integrated plant maintenance, consistent standards, and single help desk ensure thefacilities management services are at the leading edge of efficiency.

Centre hospitalier de I’Université de Montréal CHUM, Montréal(Finance Award 2012) The project involves the replacement of threeexisting hospitals into one new facility of approximately 332,655 squaremetres in downtown Montréal. It involves the largest P3 senior debtfunding in Canada to date with a value of $1.37 billion and is the firstCanadian P3 financed at a BBB-category rating level. Management services are at the leading edge of efficiency.

The critical factor in successful P3s is acknowledgingboth that the desired result must be defined accuratelyand that the process must meet the tests of publicscrutiny – open, fair, and transparent.


long-term P3 contract requires careful preparation as well as diligent execution.

Owners are Responsible for Service Management During the initial planning stages, the owner shoulddetermine the ‘stay back’ organization that will representits interests in the P3 contract and participate in managingthe ongoing business relationship with the P3 supplier.

This role is known as service management. The client must retain sufficient technical or subject matter expertisefor various critical functions: To advocate for the owner’s interests (and rights). To confirm the compliant delivery of goods and

services required by the contract. To discuss adjustments and changes that may

require price negotiation. To maintain effective communication and

resolve disputes. To identify or respond to opportunities to improve

quality or value. To represent the owner at contract closeout,

hand-back, and re-procurement.

The stay-back organization for the service managementfunction will be much smaller than a traditional servicedelivery function, but it will retain the same level of publicaccountability for the services being delivered through the P3 contractor. Inadequate provision for servicemanagement puts expenditure controls, value for money,and effective program delivery at risk.

The skills required for these new service managementfunctions differ from the direct supervision of operationsand the administration of short-term contracts. The long-term success of a P3 arrangement requires the owner’srepresentatives to build and maintain reciprocal trust,mutual interests, and transparent accountability – apartnership. The service manager needs appropriatequalifications and expertise to gain the respect of the P3contractor and to carry the owner’s authority for approvalsand decisions required by the contract.

Ideally, the owner’s service manager is recruited or assignedduring the project-planning stage to build familiarity andcommitment. The P3 contract is just one component ofthe complete public-private partnership and the owner’sservice manager is a critical facilitator in its success.

What is a successful P3 project?The Canadian Council for Public-Private Partnerships(C2P3) makes annual awards to honour outstandingCanadian P3s in the areas of project financing, servicedelivery, and infrastructure that have demonstratedexcellence and innovation. The 2012 awards included twohighways and five healthcare facilities and showcase howP3s “are having a positive impact on communities acrossCanada looking for renewal and investment to deliverinfrastructure and services faster, more efficiently and atgreater value for taxpayers.” (www.pppcouncil.ca)

Core Message for P3 SuccessFor initial and long-term success the public sector ownermust participate actively with the P3 project deliveryorganization and continue to allocate the right resourcesto fulfill its responsibilities throughout the service manage-ment period. Although the private P3 partners deliver thegoods and services, the public sector owner continues tobe accountable to the public. That accountability cannot betransferred – even through a P3 approach. Initial P3 successcan be declared during the planning and project deliverystages as represented in the C2P3 awards. However, thedetermination of ultimate operational success from theowners’ perspective will require many years or decades. C

Disraeli Bridges & Freeway, Winnipeg (C.W.Chuck Wills Award 2012) This City of Winnipegproject included the replacement of the two-kilometrestretch of the Disraeli Freeway, with a new road andtwo bridge structures over the Red River and railway.The private partner was challenged with environmentalcontamination and keeping lanes open duringconstruction. The result is 17 percent in cost savings compared to the traditional approach and a much-improved artery into Winnipeg’s downtown.

Humber River Regional Hospital, Toronto(Finance Award 2012) This $1.75 billion project is the first fully digital hospital in North America. The $1 billion of private construction-phase financingis sourced from a combination of short-term andlong-term bond proceeds, which achieved an “A” rating when they were issued.

FOR FURTHER REFERENCE:Canadian Council for Public-Private Partnerships (C2P3) www.pppcouncil.ca


A management consultant must have a compelling reason to want to work in another country, especially adeveloping country. One of the best managementconsultants I have ever worked with, Dale Robinson CMC,captured my passion and commitment to the developingworld when she responded to my question about why shewanted to work in Suriname in the late 90s. Dale said, “I want to do it because I can make a difference there.”

Dale was one of two management consultants workingwith a group of businesses in Suriname for two years. Her role was to help them expand their businesses locallyand internationally by implementing international bestpractice management systems. The objective was toensure they delivered what they committed to on time, allof the time, and made money doing it.

International management consulting is not for everyone.Suriname was not an easy assignment. The work was verychallenging and there were no five-star hotels or beaches tovisit. It was hot, the food was different, and the water a risk.

Making a difference requires patience, innovation,adaptation, and a love of the people you are trying to help.

In 1985, I (and two other management consultants) startedBusiness Resource International and BRI InternationalInc. The purpose was to help organizations in Canada andinternationally define what they want to do (and how todo it) by implementing the structure and culture necessaryto align their vision, mission, and objectives withoperations. Within six months we had our first inter-national client: The Singapore Institute of Standards andIndustrial Research (SISIR).

Since then, we have helped organizations in Brazil, China,Colombia, Suriname, Nigeria, and Guyana, among others,to develop and implement a governance and risk manage-ment framework for corporate social responsibility (CSR)and sustainable development.

We decided to focus on capacity building by transferringour knowledge and capability to local managementconsultants while helping local companies implement the governance and risk management systems requiredto sustain change. This approach required partnering with organizations that could provide local managementconsultants able to commit the time, sometimes twoyears, to work with our consultants. The goal was to helpthe organizations implement the required systems anddemonstrate a measured improvement in organizationalefficiency, effectiveness, and stakeholder satisfaction.

Trinidad and Tobago was the proving ground for our

approach. The initial project included helping fourcompanies and training two management consultants,and was delayed because of an attempted governmentcoup. Funding was split between the Canadian Inter-national Development Agency (CIDA) and the companiesinvolved in the project.

After ten years and many challenges, we pioneered the‘BRI Group Process,’ used in Canada and worldwide tohelp groups or clusters of small and medium-sized enter-prises (SME) share resources and the cost of imple-menting governance and risk management systems forquality, environment, health and safety, and CSR. Over 300Canadian SMEs participated in the BRI Group Process.

Making a difference requires vision and risk takingIn 2000, when we were close to completing a two-yearproject in Brazil, our client, Servico Social da Industria(SESI), one of the education and training arms of the BrazilFederation of Industry, asked me where Canada, the USA,and Europe were going in terms of sustainable develop-ment. Two years later, as a result of our conversation, Brazilhad the first companies in the world with integratedgovernance and risk management systems for CSR andsustainable development.

After this success we were asked by the Confederationof Indian Industries (CII) to train their managementconsultants while helping Indian companies implementintegrated governance and risk management systems forsustainability. CII wanted us to build on a comprehensivetraining program for they had been using throughout India.

Once again we were called on to learn and help companiesimplement integrated governance and risk managementsystems for CSR and sustainable development.

Recently I started a project on socioeconomic develop-ment in Nigeria. One of the past presidents of theCanadian Manufacturers and Exporters, Steve Van Houten,remembered what BRI and CME did in the early 90s tohelp SMEs in Canada implement governance and riskmanagement systems for CSR and Sustainable Develop-ment. Thanks to an introduction from Jim Chester CMC,we are now in discussion with the African DevelopmentBank for funding to continue the project and to expand itacross the whole of Africa.

Successful management consultants know that they getpaid for results, not time. In the developing world results areabout providing clients with the ability to make sustainedchanges and create and implement a vision that makes adifference in their lives and the lives of their stakeholders. C

Doing businessinternationallyBY ROBERT G. WHITE CMCPRESIDENT, BRI INTERNATIONAL INC.

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Bob White CMC, President, BRI International Inc. in Mexico City.

Getting international assignmentsrequires active participation in anetwork. Most of BRI’s internationalwork came as a result of partnering with an organization or individual who already had the assignment, orbelieved they could get it with a personor organization that had the qualifica-tions that BRIs consultants have.

Previous fiscal year

ACTIONS TAKEN TO BUILD REVENUEStrategic actions taken to build revenueMultiple responses possible. Will add to more >100% N=412

Increased business development efforts 52%

Focused on different services 30%

Focused on different client segments 27%

Increased marketing communications 25%

Targeted hiring 17%

Changed business model 15%

Diversified geographically within Canada 12%

Diversified geographically outside Canada 7%

Other 6%

None 19%

Seven percent of Canadian management consulting firms say they diversified geographically into new foreign markets in the previous fiscal year.

Previous fiscal year

WHERE REVENUE WAS EARNED

Approximately one-in-five firms earned consulting revenue outside Canada in the previous fiscal year. Virtually all ‘exporters’ also earned revenue domestically.

Current fiscal year

REVENUE GROWTH EXPECTATIONSRevenue expectations for current fiscal year for own firmCanada only

Exporter

22% 11% 15% 15% 21% 15%

37% 8% 11% 16% 13% 16%

Firms that ‘export’ consulting services tend to have higher % revenue growth expectations for the current fiscal year than‘Canada only’ firms.

BARRIERS / CHALLENGES IMPEDING ‘EXPORTERS’Interviews with exporters provided anecdotal evidence of various challenges in foreign markets, beyong the need to establish credentials and build contacts. For example:

Limited knowledge of foreign opportunities and search costs

Extent of local (or global) competition Protectionism / home market bias Availability and nature of visas Exchange rates Health and security concerns Willingness of Canadian staff to travel / work abroad Local partnership model in global firms Unreliability or delays in payment Contractual / legal risks

Copyright: @ 2013 Canadian Management Consulting Industry Study. All rights reserved.

FIGURES AND TRENDS FROM CMC-CANADA’S 2013 CANADIAN MANAGEMENT CONSULTING INDUSTRY REPORT

Canada79%

<1%Rest of world

<1%USA8%

3%

8% <1%


PASSION IN THE PROFESSION

50 years of passion in the profession

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In 1963, ten leading accounting firms founded The Canadian Association of Management Consultants. It was the foresightand action of these leaders that served as a catalyst to start thedevelopment and maturation of the management consultingprofession in Canada. On the occasion of our Golden Jubileemilestone, we thank these passionate individuals.

BY GLENN YONEMITSU CMCCHIEF EXECUTIVE OFFICER, CMC-CANADA

opposite: Ted Netten FCMC (left) and George Currie FCMC (right), both worked at the firm Urwick, Currie Ltd in the 1960s.

We recognized that personal accreditationand personal recognition was at the heart of whatwe were seeking to do.”—George Currie FCMC“


Ted Netten FCMC, worked with McDonald, Currie, andthen with Price Waterhouse, and remembers; “There was nothing in Canada. If you wanted to know what wasgoing on in management consulting, and you wanted to see what the professional practices were doing, youwent [to the U.S.] to an Association of ConsultingManagement Engineers (ACME) Conference.”

“ACME had all the accoutrements of a profession(common body of knowledge, code of ethics, professionaldevelopment) even though it was an industry association.”

By 1956, the Quebec Institute of Chartered Accountants (ICAQ) established a special committee, conducted by CharteredAccountants, and chaired by James J.Macdonell, Partner of Price Waterhouse, andfuture Auditor General of Canada, to study“ethical and other considerations relating to management consulting practices.”

ICAQ encouraged consultants to organize. In 1960, theheads of management consulting practices of theQuebec-based CA firms broadened their group to includenon-CA consulting firms.

Macdonell felt the best way to raise the awareness of thecompetence of the work was “the development andmaintenance of the highest possible standards for theapplication of our skills in this art.”

In 1958, the Quebec Institute adopted rules that allowedCAs to carry on a management consulting practice undera separate name, “providing that they conformed in all

respects to the established rules of professional conductfor institute members.”

At the same time, consultants themselves determined toorganize, taking responsibility for the orderly and dis-ciplined growth of their field. 6 of the 10 original foundingfirms, including Gerald Fisch of Payne-Ross (now Deloitte),asked themselves:

“Are there matters or areas which could be discussed bya group of individuals engaged in management consultingin different firms or organizations which render such adiscussion profitable?”

Geoff Clarkson of Woods Gordon convinced the firms toput aside their differences, and reconcile their personalityclashes to promote the virtues of cooperation. In October1962, they formally agreed that an association of manage-ment consultants in Canada was necessary and shouldbe formed.

Like Macdonell, Clarkson appreciated that a professioncannot advance through individuals who guard theirexpertise as ‘secrets’ of their own.

George Currie FCMC, head of Urwick Currie, apredecessor to PwC, described Clarkson; “Geoff was aquiet-spoken, thoughtful, kind man, who never raised hisvoice. We realized that we weren’t dealing with someonewho was trying to put one over on us. He was genuinelyprepared to share the knowledge that he and his firm had of management consulting, which was substantiallymore than any the rest of us had.”

On July 4, 1963, the Canadian Association of Manage-ment Consultants was established and Clarkson servedas first President.

ORIGINAL OBJECTIVES OF THE CANADIAN ASSOCIATION OF MANAGEMENT CONSULTANTS

To foster amongmanagement consultantsthe highest standards ofquality and competence.

To establish, maintain,and enforce upon allmembers strict rules of professional conductand ethical practice.

To undertake development,research, and trainingprograms which will advanceand disseminate amongmembers the common body of knowledge of professional management.

To disseminate, to the business community andthe public, informationregarding the servicesoffered by the managementconsulting profession.

To represent fairly, and act as authoritativespokesperson for, themanagement consultingprofession.

To provide, in due time, a set of standards to bemet by individuals desiringto be recognized asProfessional ManagementConsultants.


There was a meeting at the Windsor Hotel in Montreal, primarily with the people who would be the first‘management consultants’ to be certified, as to the merits ofhaving the designation, with the large firms, to help promoteprofessional management consultants – to demonstrate thatwe were as qualified as any other professionals: lawyers,accountants, doctors, and engineers.”—Ralph Boston CMC

“

The Canadian Association of Management Consultants (CMC-Canada) is proud to offer members a growing range of high-quality products highlighting the Certified Management Consultant(CMC) designation. Browse around our online store, we offer a fast and secure checkout. Wear your designation with pride!

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Currie emphasized, “We recognized that personal accred-itation and personal recognition was at the heart of wewere seeking to do.”

The industry association that was CAMC continued until1976, when the Currie Report challenged the leadershipon whether to grow substantially or to reduce some of itsactivities. CAMC (now CMC-Canada) was consolidatedwith the Institute of Certified Management Consultants ofCanada (ICMCC), which ensured the Institutes acrossCanada were coordinated.

In 1982, Joe Martin FCMC, of Touche Ross (now Deloitte),as President of the Institute of Management Consultants ofOntario, called for legislation that recognized the profession:right to title by 1987, and right to practice by 1999.

Don King CMC, chaired the Professional Affairs Com-mittee that took up the challenge, and in 1983 the Provinceof Ontario became the first jurisdiction in the world to re-cognize the Certified Management Consultant designation.

Legislation was subsequently passed in all 10 provincesrecognizing the CMC designation.

Ralph Boston CMC, a young professional with P.S. Rossand Partners, was one of the first to receive his‘management consultant’ designation. “There was ameeting at the Windsor Hotel in Montreal, primarily withthe people who would be first ‘management consultants’to be certified,” Boston recalled. The leaders madepresentations to the group, “as to the merits of having thedesignation, with the large firms, to help promoteprofessional management consultants, to demonstrate

that we were as qualified as any other professionals:lawyers, accountants, doctors, and engineers. A lot of uswho were familiar with professional engineering thoughtthis was a great idea.”

In 1985-86, a special CAMC task force, led by GeoffMcKenzie FCMC, published a white paper advocating for free trade. 20 consulting firms endorsed this paper.When the Canada-U.S. Free Trade Agreement came intoeffect, management consultants were included as one ofthe professions allowed access across the border thanksto this lobbying effort. This is now included in NAFTA.

In 1986, the Institute in Manitoba, led by Sean Sweeney FCMC,developed the CMC racetrack logo. This logo has becomethe recognizable icon for the CMC designation worldwide.

CAMC’s activities were then consolidated with thecoordinating activities of the Institute of Certified Manage-ment Consultants of Canada and the new amalgamatedorganization was called CMC-Canada.

The CMC movement continues to advance the consultingprofession thanks to the efforts of dedicated andpassionate individuals. Please join me in recognizing andthanking all those over the past 50 years who contributedtheir passion to our profession.

Want to read more about the founding of CMC-Canada?Visit the ‘About Us’ section on www.cmc-canada.ca toread ‘From Stopwatch to Strategy,’ published in 1988 onthe 25th anniversary of CMC-Canada, and otherinteresting facts about the Association. C

JAMES J. MACDONELL: A CANADIAN LEGEND

James Macdonell became ManagingPartner of the consulting division of Price Waterhouse and Co. at the tender age of 35. It was his committee(at the Quebec Institute of Chartered Accountants) that laid the groundworkfor the Canadian Association ofManagement Consultants. And, it was

his article, published in 1958, that served as a ‘call toarms’ for management consultants to take hold of theirrapidly developing profession.

But, as much as he helped to shape the consultingprofession, perhaps Macdonell’s best work was savedfor when he served as Auditor General of Canada from1973-1980. He dramatically changed the role of theAuditor General (AG), from an audit function, to one thattested for ‘value for money’ (VFM). VFM, or performanceauditing, was a new concept in the 1970s, but sincethen, it has spread around the world as a key method forhelping ensure accountability within the public sector.

Following his role with the Federal Government, James served as Canada’s representative on the UnitedNations Board of Auditors. In 1982, he became the firstnon-American to serve as a member of the Consultantpanel of the Comptroller General of the United States.

GEOFFREY CLARKSON: A STATESMAN

Geoffrey Clarkson was born in 1909. He came from a long line of CharteredAccountants and his surname evokes the golden days of Canadian accounting.Many business people today may notremember the name Clarkson Gordon, but for 125 years, from when ThomasClarkson founded the original Clarkson firm

in 1864, to 1989, when the firm adopted the name of itsinternational partner, Ernst & Young, Clarkson Gordon wasarguably the most respected name in Canadian accounting.

During the formative meetings of the heads of the variousmanagement consultancies, the competitive spirit did notalways lead to a collaborative solution. Geoff Clarksonplayed a key role in the eventual agreement that led to thefounding of CMC-Canada.

Clarkson was a statesman and a gentleman. his son Geoff, now a retired partner at Clarkson, Gordon, remembers hisfather as, a “tough, but private person, who made friendseasily, but was not close to many.” While JJ Macdonell had a vision and did yeoman’s service to get the consult-ants at the table, it was Clarkson who led everyone toagreement. As such, Clarkson served as the first Presidentof CMC-Canada.


FOCUS

ARE WE READY?

Reports of recent terrorist events, including bombings atthe 2013 Boston Marathon, an alleged plot at the BC legislature, and attacks in Algeria involving Canadians,have brought renewed attention to the issue of publicsafety and security. Indeed, the challenge of combatingsuch threats is costing government agencies and businesses billions of dollars annually to secure andprotect people, infrastructure, and assets. Public SafetyCanada, the federal portfolio department responsible fordealing with national security, emergency management,and law enforcement, wields an annual budget of morethan $6 billion, and the combined cost of policing inCanada now exceeds $12 billion annually. At around $18billion, spending on national defence is larger still.

Given that heightened concerns surrounding public safety and security are likely to be with us some time tocome, what then are the implications for managementconsultants and our clients?

Significant OpportunityWhile there is no simple answer, the safety and securitysector represents a significant opportunity for those

consulting firms with the right resources. Indeed, largefirms such as Accenture already have well-defined solutions for the defence, security, and public safetysectors. Not surprisingly, these solutions focus largely oncost reduction and operational efficiency as clientsrespond to growing pressure to rein in spending in theface of persistent demand.

Headline-grabbing cases and high-profile events aside,the task of ‘Securing Canada’ is a work in progress thatrequires a 24/7 effort. In fact, the safety and security sectorhas been a focus within our own practice for some timeand in recent years we have provided support to a numberof nationally integrated enforcement programs designedto combat the increasingly complex and sophisticatednature of organized crime. Meanwhile, other consultantshave also been busy playing their parts. For example,DAMA Consulting of Ottawa provided support for both the2010 Vancouver Olympic Games and the 2010 G20Summit in Toronto. DAMA has also helped clients evaluatetransit security – an area of particular concern ever sincethe 11-M attacks in Madrid and the 7/7 London bombings.

Given that heightened concernssurrounding public safety and security are likely to be with us some time tocome, what are the implications formanagement consultants and our clients?

BY JOHN GELDER FCMCSENIOR PARTNER, OTTAWA OFFICE, GELDER, GINGRAS & ASSOCIATES

SECURING CANADA


While governments have naturally beenpreoccupied with combating terrorism andorganized criminal elements, other areaswithin the safety and security domain arealso receiving considerable attention. Inter-operability – the ability of diverse systems towork together – has been an important focusof concern ever since the events of 9/11highlighted the immense communicationsand coordination challenges faced by firstresponders in crisis situations where normalchannels are disrupted or damaged.

Online SecuritySimilarly, as anxieties mount regardingpotential threats to electronic systems,networks, and infrastructure, cybersecuritypresents an emerging area where consultingexpertise is likely to be needed. Indeed,Canada’s Auditor General, among others, hassuggested that Canada’s corporate sectoris not doing enough to protect valuableassets from cyber-attack. In the U.S., it isestimated that cyber-attacks may be takingup to $140 billion and half a million jobs outof the economy every year. Retired Canadian ForcesGeneral Clive Addy, Executive Editor of Frontline Security,a publication that tracks public safety and security trends, sees cybersecurity as a major strategic issue thatencompasses a broad range of ‘globalized’ securityconcerns. These include safeguarding communicationsinfrastructure, protecting intellectual property, and maintaining the security and integrity of the banking andfinancial sectors. Reports that computer systems at NortelNetworks were hacked by outside interests for over adecade highlight the seriousness of the risks involved.

Exploring New ModelsMany of these same global forces are also affecting thelaw enforcement arena where the ‘economics of policing’are coming under close scrutiny. General Addy notes, forexample, that in the face of organized criminal gangs, oldmodels of community policing are no longer effective andmust give way to new approaches that recognize theincreasingly diverse nature of Canada’s population. Assuch, public officials responsible for law enforcement arelikely to need help to explore new models and to managethe related transformation and transition processes.

Cybersecurity is a majorstrategic issue that encompasses a broad range of ‘globalized’ security concerns including safeguarding communicationsinfrastructure, protecting intellec-tual property, and maintainingthe security and integrity of the banking and financial sectors.”

Clive Addy, Retired Canadian Forces GeneralExecutive Editor, Frontline Security

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Management consultants by nature aretrained to see problems as opportunitiesrequiring new and innovative solutions.However, DAMA Consulting ServicesManaging Director Mike Appleton FCMC,himself a former Canadian Forces Colonel,points to some important prerequisites for consultants seeking work in the safetyand security sector. First, partnerships are usually required because the ‘deepexpertise’ in fields such as intelligence andcounterterrorism is not typically residentwithin the management consulting commu-nity. Second, due to their sensitive nature,most sector-related projects requireconsultants to obtain stringent securityclearances as a condition of engagement.Thirdly, consultants must exercise cautionwith respect to the handling and sharing of information due to legal statutes and privacylaws, which can vary significantly acrossjurisdictions.

Notwithstanding these considerations,Appleton anticipates plenty of opportunitiesfor management consultants to assistclients in facilitating and managing pro-cesses, or to lead or coordinate projects.Global influences mean that these opportu-nities are both national and international. For their part, clients will need to strike theright balance between managing securityrisk and expenditures, while at the same timerecognizing that others do not always playby the rules we take for granted in Canada.

Recent high profile terrorist incidents serve as remindersthat safety and security concerns will continue to beimportant drivers of demand for consulting services forsome time to come. The sector presents significant opportunity for consultants who understand the evolvingand complex nature of the risks and are prepared to helpclients respond to them in new and effective ways. Whilenot all threats can be avoided, management consultantswho are ready to take up the task can play an importantrole in helping clients reduce vulnerability to them. C

Mike Appleton FCMC, Former Canadian Forces ColonelManaging Director, DAMA Consulting Services

FOR FURTHER REFERENCE:Public Safety Canada, National Security and Cyber Securitywww.publicsafety.gc.ca/cnt/ntnl-scrt/index-eng.aspxwww.publicsafety.gc.ca/cnt/ntnl-scrt/cbr-scrt/index-eng.aspx

Nortel Hacked http://goo.gl/OXoxX1

CSIS and Corporate Espionage www.csis-scrs.gc.ca/prrts/spng/index-eng.asp

Frontline Security www.frontline-security.org

Economics of Policing www.publicsafety.gc.ca/cnt/rsrcs/pblctns

Partnerships are usually required because the ‘deep expertise’ in fields such as intelligence and counterterrorism is not typically resident within the management consulting community.”

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TOP OF MINDON TRAVELDo you have an opinion, idea, or perspective that you want to share? Send in your quotes to [email protected] ‘Top of Mind’ in the subject line.

Staying at ‘under the skin’ local hotels and inns make business travel more interesting.Yes, the Marriott can be counted on as always the same. But you will miss the littledetails that make boutique hotels charming. However, ear plugs are a requirement and check that they have good Internet access.Terry Rachwalski CMC Front Porch Perspectives Ltd. and The Tartan Group

Fly Tuesday, Wednesday, or Thursday—this provides the best chance. Always book anaisle seat, early. When checking in, ask the attendant, “Is the flight full? Am I booked onan aisle seat?” The information she gives to these Qs will be important to your strategyof getting a double seat for a better sleep on those transatlantic night flights. Go to thedeparture gate and wait until everyone has gone down the chute. As you walk down theaisle, look to see where your seat is but also look for the empty double seats—targetyour best opportunity and sit down! No one has ever challenged me because they think this is my appointed seat!Jim Chester CMCProject Manager, President, Canadian & International Project Management Ltd

My favorite airport is Schiphol AMS (Amsterdam)… mainly because of the ease ofaccess to ground transportation with the NS Railway under the main terminal area andvery easy access to ticketing, shopping, whatever.John Glover CMCPrincipal, MayneStay Consulting Group Ltd

If you like flying, sit in the back row of the airplane—way more exciting… and themiddle seat is often empty, enabling one to work without snoopy neighbors. Back row (often) also allows you to observe, and trust me, if you do 400—500 legs a year (and I have) you will observe a lot... Always befriend flight attendants also sitting in theback row and deadheading home from vacation. The drinks tend to flow—especially on red-eye flights and, if you're a REALLY frequent flier, getting to know the flight attendants may get you bumped to First Class on future flights.Mike Hughes CMC Partner, Advisory Services, KPMG

Use a travel checklist. You can make your own or get a free one online. A checklist will ensure that you bring important items like meeting information or medication. I suggest you create or download an electronic version that you can update and printoff when needed, which will save time and effort.Kara MorganPlanIt! Outsourcing Solutions


HOW’S YOURASSET?

ONYOUROWN… BUTNOTALONE

Assess your strengthsand weaknessesIf you haven’t done an aptitude testsince high school, now may be justthe time. These assessment toolshave come a long way since the ones administered by your guidancecounselor. One innovative tool foruncovering your natural talents isStrengthsFinder 2.0. In this Wall StreetJournal bestseller, Gallup unveils its new and improved version of itspopular assessment tool. Loaded withstrategies for applying your strengths,the book, plus online assessmentand accompanying website, maychange the way you look at yourself.It helps you identify your top fivestrengths, as well as recognize yourlesser talents and how to workaround them. Armed with theseinsights, you’ll be better able todetermine if the independentconsultant path is the one for you.

Be your own back officeThe downside of going solo is big.All the invoicing, secretarial work,filing, etc. is handled by you. Youorder supplies, maintain the computer,make the coffee, build the website,and answer the phone. If you detestadministrative work, consider howyou will deal with these day-to-daynecessities or whether you can hiresomeone to assist you while youfocus on bringing in clients andworking on projects. Perhaps somesupport, like working in an execusuite,is a better choice for you than a home office.

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2.BY CAROL PANASIUK CMC CO-OWNER, THE COMMUNICATIONS DEPARTMENT

Even during uncertain economic periods, it can be a good time to start your ownpractice, as long as you have drive andambition, entrepreneurial acumen, talentand skills, and a clear idea of the servicesyou can provide that are needed by clients you can identify.

*Tom Rath, StrengthsFinder 2.0 (New York, Gallup Press, 2007)

Given all theuncertainties,going solo is not for everyone,nor should it be.Knowing yourself andcareful planningcan mitigate the inherentrisks and allowyou to reap the rewards. Ifgoing solo fitsyour personality and your goals,you will behappy you tookthe plunge and wonderwhat took youso long.

Create your roadmapDeveloping a business and marketing plan, a revenue and expense projection, even for a one-person consultancy, is well worth the time and effort. You have the opportunity to shape your business in the way you want – including determining what kind of assignments you will take, the fees you willcharge, what you will invest in, and how youwant to be perceived in the marketplace.Consider short-term goals: how do you seeyour business in one, five, and ten years; and longer term goals: what are potential exit strategies?

Find your nicheAssuming that consulting on your own is the right path, the next step is to assess yourunique skills and expertise and the demandfor those in the marketplace. Who are yourpotential clients and how will you marketyourself to them? Will you only work in yourown province or will you be national or international in scope? What sets you apartfrom everyone else? Why should clients hireyou? What else might you need to make your offering even more compelling? Clearlydefining your niche will go a long way inhelping you focus time and resources.

Hire the professionals you needYou no doubt already know a capable account-ant and lawyer who can help get your newconsulting practice up and running. Throughyour network you will find resources for IT, logoand web design, E&O insurance, and socialmedia. While daunting at first, once you havefaced these new challenges and perhaps learnedsome new skills, you will actually become a more confident consultant, better able tounderstand and empathize with your clients.

Learn to deal with the ups and downsWhen you are on your own there is no steadypaycheque. Some months everyone pays and other months nobody does. It is verystressful when it seems like there is no workand no cash coming in. Having the internalfortitude to carry on is a necessary componentof becoming an independent consultant.

Leverage your network…you are not aloneEven seasoned management consultants are often hesitant to go out on their ownfearing that they will miss the support of theircolleagues and the resources of the largefirm. But over the years, through effectivenetworking, you probably have contacts whowould be more than happy to assist you evenif it is just to bounce ideas around.

Your local CMC Institute or Chapter is just the place to find like-minded entrepreneurs.Go to meetings, join a special interest group,tap into the website, on-line resources andopportunities, and get networking! You willmeet with an enthusiastic and genuineresponse from other CMCs.

Market yourselfSome months it seems like there is nothing to do, other months are sheer pandemonium.Constantly drumming up new business is the key to smoothing out the ups and downs. But are you good at blowing your own horn?Maybe new clients will come in ‘over thetransom’ but more likely you will have to be a self-promoter. Marketing your skills, gettingout there and networking, and asking forreferrals are a huge part of being a soleconsultant. If you are not comfortable with‘selling,’ consider taking some marketing andpublic speaking courses and talk to othersabout how they manage their sales process.

Set your standardsDo you chafe at the structure and rules of a large firm? While you might think these goout the window when you are a sole consultant,they actually become more important whenyou are on your own. Consider the performancestandards that you will set for yourself as youwork with your clients. How will your clientsmeasure your results? How will you assessyour own performance?

Self-imposed structure will create goodhabits, which will in turn drive behavior andoutcomes. Discipline and an unwaveringfocus on your goals are essential, particularlyif you are working in a home office. It’s easyto get distracted by family, friends, the fridge,and even Dr. Phil when working at home.

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Documents

Consult magazine - Fall 2013 issue